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Funding higher education in England

HEFCE is responsible for distributing public funds for higher education in England. In distributing the funds we aim to meet the needs of students, employers and the nation by promoting high quality teaching and research.

We allocate our funds using funding methods and policies that are open and transparent. Further information on our methods is available in 'Funding higher education in England: how HEFCE allocates its funds' (HEFCE 2008/33).

Information on funding for learning and teaching, research, widening participation and business and community initiatives is available. Periodically we consult with the higher education sector on proposals to modify our funding methods. Information on consultations and their results is available.

HEFCE's overall budget is set by government, so our funding method does not affect the total sum available for distribution to institutions. The annual grant letter from the Secretary of State sets out the resources and priorities for higher education. HEFCE provides advice to the Secretary of State on the funding needs of higher education in England.

Most HEFCE funding is distributed as block grants to institutions, allocated according to formulae which take account of certain factors within each institution, including the number and type of students, the subjects taught and the amount and quality of research undertaken there.

The recurrent grant announcement each March sets out the grant for the following academic year to each university and college that we fund.

Last updated 9 July 2010